I've had a play around with a POD 2.0 at a music store and it's indeed the (as we brits say) dogs bollocks, it's really great, the people at line6 spend a LOT of time creating digital versions of classic analogue amps.

One thing I would suggest is the behringer V-amp, it's just as good (even better in my view) and it costs about half as much as a POD http://www.behringer.com

another good little gadget is a tech21 sansamp, which is slightly different but was originally designed to be a 'backline in a box' it's got a HUGE variety of tones, based on three main amps, fender, mesa/boogie and marshall, you can tweak them to get that warm fender sound, to a cranked ANGRY marshall JCM800 http://www.tech21nyc.com

hope that helps!